Euro vs. Great British Pound (2011-04-01)

By IBT Staff Reporter On 04/01/11 AT 2:28 AM

Morning Report

The royal pair succeeded in closing consecutively above 0.8815 zones where the Fibonacci projection level of 261.8% of our previous discussed bullish harmonic pattern. Hence, the bullishness is still in favor, targeting 361.8% Fibonacci at 0.8950-0.8960. The efficient bullish scenario is still classically protected by the upside channel that organizes achieving the extended technical targets of the harmonic pattern but we should beware since signs of slant negative divergence appeared on our provided four hour graph and it may force the pair to show some kind of recovery before resuming the bullishness. SMA 50 is carrying the royal pair from below as well.

The trading range for today is among the key support at 0.8700 and key resistance now at 0.9000.

The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of0.8965remain intact.